McDonald's, one of the largest fast food chains in the world, with presence across the board, is in the eye of the storm.
E. coli Scare At McDonald's
The E. coli outbreak in 10 US states, with burger joint in the centre of the happenings, has resulted in the death of one person in America, with the whole incident becoming a major reason for concern amongst patrons of the company.
As a result of this development, the company even pulled out some of the items that are on the radar of scrutiny. This, however, did not help their cause, at least at the equity markets. The shares of the company listed on the New York Stock Exchange tanked on Wednesday's trade.
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Westlife Shares Drop
Not just that, the Indian operator of the McDonald's franchise, Westlife Foodworld Ltd., also appears to be swept with the current of concern. Westlife's wholly-owned subsidiary, Hardcastle Restaurants in Western and Southern India.
In addition to the E.coli fiasco, Westlife is also gearing up for its quarterly results for the recently concluded quarter.
At the time of writing, the shares of Westlife dipped by 1.85 per cent or Rs 15.25. The share opened at Rs 826.00 before dropping to Rs 810.10 per share.
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McDonald's In Crisis
Facing stiff competition from other competitors, McDonald's only hit itself in the foot, further exacerbating its status by getting involved in the Israel-Gaza conflict, which led to many of its customers boycotting the company altogether in the Middle East and elsewhere.
The closure of the company in Russia, a major market in Europe, after the Russian invasion did not do the American giant any good.
Amidst all these developments, the recent health scare has sunk the company into a quagmire.
On Wednesday, October 24, the shares of McDonald's Corp. dropped by a mammoth 5.12 per cent or USD 16.12, dropping below the USD 300 mark. The shares closed at the price of USD 298.57 per share.